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San Francisco 10, California 7, Cca 6, Puc 3, California Public Utilities Commission 2, Marin 2, San Franciscans 2, Torres 2, Us 2, Barbara Hale 2, Pimentel 2, Olague 1, Moran Commissioner Caen 1, Mr. Kelly 1, Avalos 1, Sandy 1, John Avalos 1, Har 1, America 1, Cupuc 1,
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  SFGTV    [untitled]  

    December 28, 2012
    10:00 - 10:30am PST  

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the local agency formation commission as a joint meeting with the public utilities commission. my name is chair avalos, john avalos chair of the lafco. i am joined by other lafco members, commissioner olague and commissioner pimentel. this is a joint committee so i will pass on the mic on our chair from the public utilities commission. >> yes, art torres member of puc and other members. thank you very much for being here. we make a very legionary and strong quorum on this rainy day. >> okay. >> and of course our general manager is here as well, har an kelly and the staff of the puc. >> thank you. i want to thank
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sfgtv for their work broadcasting this meeting, and madam clerk if you could chair with us your announcements. >> please make sure to silence all electronic devices. speaker cards and any documents should be submitted to the clerk. >> okay. do you want to call the roll? you call the roll on puc. >> yes. >> president torres. >> here. >> commissioner. >> here. >> commissioner moran commissioner caen and cortni are both excused from today's meeting. >> okay. that serves as items one and two. let's call our hird item. >> third item opening remarks and expectations for the joint meeting. >> okay. actually let's just call -- let's just call items four and five along with that
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and we can have our opening remarks that will cover all these items. >> item four is general update on the cleanpower sf. item five is discussion on the san francisco public utilities commission and for the education plans for the choice aggregation and cleanpower sf program. >> okay. very good. colleagues it's a really as president torres as said it's a momentous occasion, historic occasion we had. we improved our relationship with shell and the allocation for the cleanpower sf and we're looking how the power can be maximized in the next year as we in fact the process of enrollment. i've actually believe that the timing of this could not be anymore -- anymore important to do today because of our global climate change that is happening, and i believe
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that we're seeing -- actually on the way here today i was listening to the radio. there was a report on democracy now that a portion of our artic ice about the size of the united states of america had melted this year which is significant to really alter what the temperature of the ocean is and we're seeing what really the impact of -- every year we're seeing dramatic examples of climate change and hurricane sandy being one of them. we're also seeing around the world real demographic changes in our country. there is accumulation of population under urban areas and we have to look at those areas where we meet the challenge of climate change so we have to look at promise of our cities. san francisco bay area is a city that has great resources to
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meet the challenges of global climate change. this program, the cleanpower sf program is what we have. it's our greatest tool to assure we're doing our part around climate change around the world, and this little area of the world can actually make a huge difference, and that's what we have to decide how we're going to implement over the next few months, but the major work that we have actually accomplished by green lighting this program to move forward. i want to also emphasize that while we're actually implementing a program addressing our part with climate change and creating the clean power program in san francisco we're meeting a program that meets the needs of the city, not just around clean energy but employment and if we're successful in this program, and especially to the build out of the program that can happen
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when we have revenue coming in and many jobs can come with the build out and i am excited about that. there are neighbors in san francisco that are greatly impacted by unemployment, greatly impacted by marginalization and racism and inability to access the job market and this can lead the way that we have a strong implementation of programs and services to support communities that are in need of opportunity, so i'm very xietded about how we can move forward with this program, and i will actually cede the mic to the president of the commission. any opening remarks about today's -- >> i can't add more to that articulate overview and i support it and thank you to the commissioners that preceded me and the staff and the now general manager as well for
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their contributions during that process. thank you mr. chairman. >> thank you. today we will be discussing the customer notification and the education plan. i think it's the bulk of the work before us to look at that plan and see if it meets the needs moving forward. who is presenting on that from the puc? we will provide the general update of the cleanpower sf program. >> barbara hale will give an update. >> thank you mr. herring -- mr. kelly, sorry. thank you, i am barbara hale, assistant general manager for power. by way of updates item four i just wanted to remind you in your packets is a detailed timeline for implementation of our cca program. we also are in
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working constructively with lafco in their advisory role to the board in implementation our cca program we are operating under a memorandum of understanding with lafco that describes the roles and responsibilities of our respective staff and we expect that as we get to actual program launch we will come back to you with a new mou that describes our ongoing relationship at the time. the mou we're operating under this point is expired but i think we're both comfortable to serve those roles until the program takes better shape and we can then revisit roles and responds with that information in hand. then the other item i wanted to make mention of by way of update is some of our activities at the california public utilities commission. we did go forward with the filing of our revised implementation agreement, implementation plan at the
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california public utilities commission. it is under review there and we expect it to be certified by their executive director before the -- by january. we have seen a proposed decision from the california public utilities commission that implements the provisions of the cca code of conduct that were adopted in legislation, sponsored by senator leno, so we expect that proposed decision to become final in the next 30 to 60 day time period so we will have clarity on those rules of engagement are before we launch our program, and we are closely monitoring the green tariff pricing proposal that pg&e sprited to the california puc for approval. that is the program when it was initially proposed by pg&e would have
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pg&e offering to san franciscans an opportunity for 100% renewable product that is greening up their portfolio to using renewable energy credits, so they have placed a proposal before the california puc for -- their agreement. parties are engaged in asking questions, testimony has been filed. the cupuc had scheduled hearings in december for the proposal, but those hearings on hold in order to allow parties to talk further and potentially arrive at a settlement. there really isn't active settlement discussion under way right now. we expect that may happen in january, and if you play out that process we think that maybe july or august
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of 2013 we will know what shape the program that pg&e has proposed has been authorized by the cupuc. pg&e would then as i understand it from their filings need to go through a solicitation process to hire a third party contractor to perform the program implementation and we're thinking it would probably be a tariffed and ready program by maybe around february of 2014. that's all very tentative at this point because as i say it sorts of makes assumptions how that process is going to go with the cupuc, but at this point they're anticipating settlement and proposed decision. >> ms. hale could you elaborate about the code of conduct? what are the elements of that? if you could summarize what is before the puc with that? >> i can and we have city
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attorney here who is also familiar with this and perhaps could fill in some of the gaps for me. the code of conduct largely came out of the -- the law that created the code of conduct requirement came out of the experience that pg&e and marin energy had when marin energy launched its program so the code of conduct puts certain restrictions on both parties, the utility, in our case pg&e and on us as a cca. broadly speaking it prohibits either party from misleading customers. it requires that any expenditures that pg&e incurs to actively market against the program cannot be reimbursed by rate payers and shared by shareholders. it allows pg&e to
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answer questions and educate about their program and how it compares to our program. it requires both parties to work with the california public utilities commission public advisor's office to create a comparison document that would be made able by all parties on the two program offerings. so that gives you some of the key elements. >> and the code of conduct you said is in the process of being approved or is approved. >> so a proposed decision was drafted and sent out for comment by the cupuc staff. it then by state statute sits before the body for not less than 30 days before the commission may adopt, hold, or modify and then adopt the item. >> very good. do we expect that the way it is now to change dramatically? that some of the
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restrictions could be challenged? >> comments on that proposed decisions have not yen yet submitted. my guess it won't be changed dramatically. >> okay. thank you. >> >> you're welcome and if it's pleases the chairs i will move on to number five, the customer education program presentation. >> okay. >> so what i have before you and on the screen if sfgtv could help. thank you. a program description of our customer notification and education plan. this is our plan as conceived to ensure that we are very responsive to the direction we received from the board, the commission, the mayor to make sure that we are really educating our potential customers and not having any
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accidental customers or gotcha customers enrolled in the program given it's an opt out program so what we're asking for today is an opportunity to present that program to you, to get your guidance, and to ultimately if it pleases the public utilities commission to receive their endorsement on the overall framework of this plan. what you see on the screen here is the overall program elements. i'm going to dive a little bit more deeply into each of these as we go through the presentation and i am happy to take questions throughout. so beginning here in the quarter we're in right now we have, just as a reminder over the last three years under taken a extensive outreach program to the community here in san francisco. it's been a multilingual effort and retail in terms of face-to-face engagement. it's been fliers
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and multi-media so far, and what we came out from that effort of gathering information and engaging with customers, potential customers, are there's findings that have shaped our cleanpower sf program offering and that is that san franciscans will pay a premium for a premium product, that 100% renewable product. we have a geographic understanding of the customers most interested in cleanpower sf and those are the customers we propose to focus on in the first phase as we roll the program out and we are anticipating there is sufficient interest in those areas to offer about a 20 to 30 mega watt program here in san francisco. this map shows you the interest or the propensity to stay with the program as we
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roll it out. with the darker green showing the most interested, most likely to stay customer locations, so you can see it's fairly concentrated, and a broad enough area to encompass about 20 to 30-megawatts of san francisco load, so that's really our first target audience , so within the fourth quarter we have this input to this point and looking for endorsement and your comfort level with the plan that is detailed in your packet, and then i will go through. a key part of our program is to make sure that customers understand the financial impacts if they
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choose to stay with cleanpower sf, so what we're showing you here on this slide is the tier by tier impact, and those are tiers that your build by pg&e on, and the tiers reflect how much you consume. most san francisco households are in tier one, that first row, and if you stay with me on tier one you will see that we're projecting customers -- electric portion of their pg&e bill to be around $21.97 in 2013. if they stay with our program and the 100% green product it includes they will see a premium of $11.54 they need to pay for that product offering so that their average electric portion of
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their bill will be about $33.50. that represents about 52-point 5% increase on the electric portion of pg&e bill in san francisco, and about a 29% premium on the total pg&e bill a customer receives each month. this is updated information based on the guidance we got from and the direction we got from the board of supervisors to make sure that our rates recover the low -- the subsidy to low income customers and to ensure our rates recover the -- begin to recover at least the financial collateral the city has applied, the security -- the city has applied to this program, so these are new rates. these are new premium
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statements factoring the two cost adjustments in. we're going to take that information out to the potential customers in a new survey. >> do we have on the slide, you know, estimate of what pg&e exit fee would be? is that included in the slide and the figures here? >> so exit fee. so any customer -- any customer that stays with the program after the first two opt out notices -- let me back up. if you don't want to be part of the cleanpower sf program and you tell us that there is no departure charge that a customer incurs that we are charging. after the program is launched if you then decide -- oh i got my first cleanpower sf bill. i don't want to be part of this program. we are still as the city saying there is no charge to depart from the
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program at that point. pg&e doesn't have a fee to exit the program during that portion of the time either. >> they don't have a fee that charge it's. >> the fee that we do include and maybe what you're referring to is the cost responsibility surcharge where if a customer leaves pg&e's bundedel service and comes to a cca pg&e will take a portion of the fees they used to charge that customer and those fees will follow the customer so the bill premiums that i am showing here include that as part of the premium so this is all in image of how your bill changes even though it's something we're not charging and pg&e is charging and they joined the program we're including in the numbers so it's transparent to customers. >> and that fee is reflected in
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every monthly bill? >> yes. it's on a separate item from pg&e on the cleanpower sf portion of the bill and there is a separate page that -- this is typically how it's happening, a separate page what pg&e characterizes as third party charges and those are the city and county of san francisco charges to the customer. >> and how long does pg&e have the ability to charge that fee into the program? >> it's not clear. that gets revisited on a regular basis by the california public utilities commission. >> okay. thank you. >> you're welcome. >> excuse me. i'm sorry. i have a follow up on that as well. is there a way -- i know we will talk at some point after -- it's separate, but the local build out conversation, and in the financing of that, and i'm actually at some point i think it would be have to have a
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lafco joint meeting that talks specifically about the financing of local build out and it's not on the agenda today, but perhaps one of the things that could be looked at is exactly what we're talking about here -- i don't know, fee structure, and if there is local generation that occurs that perhaps there is a conversation or some work that looks at those pg&e fees, and since it's really no longer going to be a pg&e provided service because it's generated by a local build out project perhaps there is a financial mechanism that could take place or enacted at that point. i don't know. i don't know if that has happened before or some of the other nationwide programs that exist, but i imagine where that financial relationship begins to shift. >> it could be. the sfpuc has been active at the california public utilities commission
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ever whenever this issue comes up for evaluation so we're on the look out for opportunities to argue to have only justified and reasonable costs follow potential customers into the cca service provision, so it's not a charge that pays pg&e for kilowatt hours that are provided to the customer. there is no relationship between what the customer consumes in terms of the portfolio serving that customer and the cost responsibility surcharge. it's sort of an over hang cost pg&e is allowed to charge to make sure the customers that stay for pg&e pay for cost it incurred on behalf of customers that left. >> commissioner olague. >> yeah, i guess -- it reminded me of pass throughs and tenants get charged sometimes for the
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increases and fees that the landlords have and i wonder how that worked ultimately but you kind of answered. >> okay. >> -- what i was thinking, but i guess i am concerned a little bit -- of course we want to definitely inform customers about these increases and rates that would result as part of this clean power shift, but i think -- i guess at some point i would be interested in understanding how that is going to be marketed or what language or what script would be used, because ultimately the goal isn't so much related to, you know, -- well, i have to be careful how i say this i guess, but i guess the goal the city is reach 100% renewable electric supply within 10 years so we have these -- i think very
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lofty values in a good place so i want to make sure when we're approaching and informing customers about the incomes in rates that. >> >> increases in rates that it balances with some information about the value of trying to reach these goals that the city has put forward which have to do with makes sure that we get to 100% renewable electricity supply within 10 years, so i think how people are informed is pretty critical. >> yes, yes. and that's largely why we're making the presentation today is to talk through what the different methods are. >> yes. >> we don't get to the level of detail of actual scripts but we do have examples of the questions we will be asking and the information we will be providing, and this bill premium chart is a good example of just
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the level of detail we can provide customer when is we talk with them because we will know what tier they're in and can say what your typical bill is like today and what it would like if you stay with the cleanpower sf program. >> it's deeper than the cost. some people see the value and investing in a sustainable future. >> right, and so talking about the product. >> and this is put on. look you will see the increases in your bills and then people might be inclined to opt out if they're not reminded of the value behind the clean sf program. >> i understand and i take your guidance. thank you. >> we have -- go ahead. >> thank you. one of the issues reading through the material was the issue -- it's really an issue of auditing and that is who will determine the pass
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through cost that pg&e shifts to its shareholders versus to the rate payers? is that a function of the state agency or do we have independent jurisdiction over that process? >> we don't have independent jurisdiction. it's within the purview of the california public utilities commission. our role really is only as an active party there to try and influence their decision. >> so we wouldn't procure the services and audit and whether pg&e is following through on the commitment not to shift the rate for the rate payers and opting into our system? >> i don't know that we would be barred from asking for audits, but it would be a discretion -- it would be at the discretion of the cupuc. they can audit but we don't have independent audit
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rights over -- >> [inaudible] >> we do for the franchise agreement. >> right. but we could recommend for the puc to take some action. >> i see the city attorney has advice for us. >> the proposed position is audits every two years with the code of conduct rules and rules of compliance. >> and that includes those factors that i raised? >> the code of conduct rules are the ones that would prohibit the utility rate payers for paying for marketing against a cca program. >> all right. i didn't see the specific language so if you could provide it to me that would be great. thank you. thank you mr. chair. >> thank you. we have a couple of the people on the rooster who would like to speak. commissioner pimentel. >> do you know how the focus groups will be assembled and if they will have a diverse group